NEW DELHI (Commodity Online): The recent discoveries of massive oil fields in Latin America, especially in Brazil, has made the Indian oil companies to rush to look for possibility for procuring crude oil from the region.
The Petrobras of Brazil has recently discovered the largest crude oil field after the Mexican Cantarell Field in 1976 and the new oil field is five times larger than the existing fields. The discovered oil well consists of mostly light crude oil.
The demand for 'sweet' or light crude oil has been rising as it contains less sulphur and low refining cost. These features have been the reason for the oil companies to seek more brent crude oil from Africa than heavy crude.
On NCDEX, the light sweet crude oil for January delivery traded at Rs 5274 at 12:15 IST.
ONGC Videsh, subsidiary of ONGC (BSE: ONGC : 500312, NSE: ONGC), may play a major role in taking up exploratory work in Latin America. It has already acquired assets in Brazil.
On BSE, ONGC traded up 0.17% to Rs 262 on 26th December 11:40 IST.
